Scope of Tax
Adjudication of Instruments
Time of Stamping Instruments
Stamp duties are levied on a number of documents which is listed in Schedule 1 of the Stamp Act (Chapter 34) at an 'ad valorem duty' rate or 'fixed' rate. Instruments which are not duly stamped may not be admissible as evidence in civil proceedings.
1) The imposition of Ad Valorem (i.e. according to the value) Duties in:
• Instruments of transfer of property including marketable securities, shares of other companies and of non tangible property, benefits to legal rights and goodwill;
• Instruments creating interests in property, for example Tenancies and Leases;
• Instrument of security for monies including instruments creating contracts for payment or monies of binding (generally described as "bond");
• Certain capital market instrument, for example, Contract Notes, Share Certificates, etc.
2) The imposition of Fixed Duties upon:
A number of other legal, commercial, mercantile or capital market instruments, for example, instrument of Articles of Association of a company, Promissory Notes, Policies of Insurance, etc; and
A duplicate or a subsidiary or a collateral instrument when it can be shown that the original, principal or primary, instrument has been duly stamped.
A person may make an application to determine the amount of duty chargeable on any executed instrument to the Collector. For this purpose the Collector may require that the instruments be furnished together with affidavits or other supporting documents. The Collector may refuse such application until the required instrument and evidence have furnished accordingly;
When a person applies for the Collector's opinion to assess the stamp duty payable on his instruments, an adjudication fee of B$25.00 (Twenty Five Dollars) is charged for each instrument. The adjudication fee is still chargeable even if the applicant decides to withdraw his application after the Collector has assessed the stamp duty payable on his instruments;
The purpose of adjudication is to protect the parties to the contract in respect of the admissibility of the instrument in court during a civil proceeding. This is because an instrument which is not duly stamped is not admissible in court as evidence.
Instruments executed in Brunei Darussalam
All instruments executed in Brunei Darussalam shall be stamped before being signed or executed.
Instruments executed out of Brunei Darussalam
Instruments other than bills of exchange, cheque or promissory notes shall be stamped within 30 days after it has first been received in Brunei.
Bills, cheques, or notes drawn outside Brunei Darussalam
Bills of exchange, cheque or promissory note drawn or made outside Brunei Darussalam and brought into Brunei Darussalam before it is stamped must affix the proper stamping before presenting the same for acceptance or payment or endorses or transfers or otherwise negotiates the same in Brunei Darussalam.
The followings are examples of instruments which are charged at ad valorem duty:
Principal (Primary) Security - $1.00 for every $500.00
Collateral – One-fifth the duty on principal security
Lease / Tenancy Agreement
For every $250.00 or part there of:
$1.00 for a period of not exceeding 1 year
$2.00 for a period exceeding one but not exceeding 5 years
$4.00 for a period exceeding 5 years or for any indefinite term
Transfer of Shares
Whether on sale or otherwise, to be computed on the price or value thereof on date of the transfer of such shares.
When the name of the transferee filled in: $0.10 for every $100.00 or part thereof;
When the name of the transferee is not filled in: $0.30 for every $100.00 or part thereof.
Last Update : 2 June 2011